I always thought that was one of their most bizarre claims. It was never explained why interest rates would magically drop 25%. Some paid for economist said it would, therefore it was a fact.
Some paid for economist said it would, therefore it was a fact.Like all their claims. Do you remember when Jorgenson's name was mentioned in every other post as if his word was gospel? Now he's avoided like the plague. Kotlikoff is getting close to Jorgenson status. How many times have you heard that you'd be paying your mortgage tax free? And when did you ever hear anyone (but us) say that states and local governments would have to raise taxes to pay their Fairtax?
The interest rate reduction was supposedly because of the income tax component, IOW rates would drop to tax free bond levels. Actually there would no longer be tax free bonds. Rates in fact would INCREASE because those former bond holders would indeed have to pay a tax on their gain(s) when they spend them and there'd be nothing to write off.
Investors aren't as stupid about their money and taxes as Fairtaxers are.